India is still among those countries in the region that received the maximum inflows during the month, an HSBC survey says.

NEW DELHI: Foreign institutional investors reduced the pace of funds flow into Asia in August, but India is still among those countries in the region that received the maximum inflows during the month, an HSBC survey says.

According to the global financial services major, FIIs continued to buy Asian equities in August, albeit at a slower pace than the previous month. Korea, Taiwan and India received the maximum inflows during the month, while Indonesia witnessed outflows.

Total foreign inflows for the region stand at $36.7 billion so far this year.

"China remains the most over-owned market in the region, followed by India," the global brokerage firm said.

Among developed markets, funds have preferred Singapore over Hong Kong. Malaysia remains the least owned market in the region.

Meanwhile, mutual funds have turned more bullish and bought $8.0 billion worth of Asian equities in the past four weeks (ended August 20) compared with net inflows of $1.1 billion in the previous four weeks, according to EPFR Global.

"Global funds have also turned overweight on China, showing renewed confidence in its growth story. Thailand and Korea are the most-loved Asian market by global mutual funds," HSBC said.

Funds are neutral on Philippines and India and underweight on other markets in the region. Singapore is the least-owned market by global funds.

At the sector level, consumer staples remained the most loved sector in the region, followed by materials and energy and mutual funds' exposure to the energy sector is at a five-year high.

"Funds have turned overweight on industrials while they have maintained their neutral exposure in consumer discretionary. Telecoms, financials and IT are the least-owned sectors in the region," HSBC said.